Originally from Dispute Resolution Journal

Preview Page

Before any contract exceeding $2,000 in amount for the construction, alteration or repair of any public building or public work of the United States is awarded to any person, the successful bidder is required to furnish a surety performance bond for the protection of the United States and a separate labor and material "payment bond" designed "to protect those whose labor and material has contributed to the prosecution of the work."

A primary objective of the Miller Act was to assure suppliers of labor and material required in the prosecution of the public work, a speedy, effective remedy.'

Every state of the Union, as well as the Federal Government, now requires that contractors on certain public works furnish a bond for the protection of labor and materialmen.